Ed Miliband has promised to save money for renetrs as home ownership remains at its lowest level for 30 yearsReuters

Around nine million renters would save more than £600 if Labour are voted in as the next government, Ed Miliband has said.

Labour have promised that the so-called "Generation Rent" will be more than £2.5bn better off (or £624 each) if the party gains power following May's election.

Miliband said he will ban letting agents fees currently charged to tenants.

He said: "Too often people having to pay hundreds of pounds in letting fees and other upfront costs when they move into their new home. It doesn't happen when you buy a house – the estate agents' fees are paid by the person selling - so why are people renting a home having to pay?

"Moving house is an expensive time anyway and there is no reason why Generation Rent should be ripped by rules which don't apply to property owners."

Emma Reynolds, Labour's shadow housing minister, added: "Nine million people, including over one million families with children, rent from a private landlord, but the truth is they're getting a raw deal.

"Renters have to work two days a week – the equivalent of working every day until the 28th May this year – before they pay the rent. But in return they get no stability, poor standards and they have to pay hundreds of pounds in rip-off letting agent fees.

"Labour is pledging to give private renters a fairer deal. A Labour Government will introduce three year stable tenancies, put a ceiling on rent rises over the course of the contracts, ban letting agent fees on tenants, drive up standards and tackle poor energy efficiency. We are also committed to tackling the root causes of this crisis by getting at least 200,000 homes built a year by 2020."

Miliband also said Labour would build more affordable houses to help first time buyers get on the property ladder.

It is reported by 2020, the average deposit for a home in the UK will cost around £72,000. As a result, home ownership in the UK has declined to its lowest level in 30 years.

Miliband said young people or families are being "ignored and let down" by the current government because of the UK housing situation.

He added: "The amount needed for a deposit on a home has risen beyond the reach of millions of young people and families starting out. As well as building more houses and helping people get on the property ladder, a Labour government will take action immediately to make life better for all those renting their home."